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Spring 2007

USU study finds economic benefits in wind power

Strategically placed wind turbines in Tooele and Box Elder counties would not only produce supplemental electricity for those areas, but they could also generate tax dollars that could be used for schools, roads, bridges, parks and other community improvements.

That, in part, is the conclusion of two studies sponsored by the U.S. Department of Energy and recently completed by researchers at Utah State University. The studies were done by Edwin Stafford and Cathy Hartman, professors in the Jon M. Huntsman School of Business at USU. A graduate student, Nikhil Mongha, assisted with the studies. Hartman and Stafford have been doing research on the potential of wind power since 2003.

Their conclusions for Tooele County are based on 2005 dollar values and the potential economic impact a $39 million wind park could have on the county. They estimate that property taxes for the first year of the project would be $431,000, of which about $347,000 would go to local schools. Wind developers, not land owners, usually pay such taxes, the study says.

Cathy Hartman and Edwin Stafford hold a miniature
version of a billboard used in 2003 and 2004 to
promote the benefits of wind power development.

In Box Elder County they estimate that property taxes for the first year of the project would be $377,000, of which about $248,000 would go to local schools.

Dr. Stafford said their studies show that landowners would benefit from leasing their land for wind turbines.

"In recent years, farmers and ranchers have found it increasingly difficult to earn a living from traditional crops and cattle, causing them to search for ‘off-farm’ resources of income," Dr. Hartman said. "Wind turbines use only a small footprint of land; farmers and ranchers can continue their agricultural operations."

Dr. Stafford said wind power is also excellent alternative in Utah, given the fact that other fossil fuel methods of generating electricity require significant water.

"Many rural communities want to preserve their way of life and seek economic opportunities that raise local income levels without some of the environmental changes created by urbanization, such as sprawl and traffic congestion," both studies conclude.

"That is, rural communities prefer to attract industry that offers quality jobs, rather than a large number of lower paying jobs. Our analysis suggests that wind development in Tooele County is attractive, in that regard, as it would create higher-paying construction and technical jobs for local residents."